Wholesale VS Retail
Hello friends! You’ll have to excuse today’s blog if it comes across a little disjointed. My older daughter had her birthday party (she turns 5 tomorrow) and at her party she got Dora’s Dance Party DVD w/ maracas and interactive floor map. She is in school right now, so this is the one opportunity her little sister has to do it without a fight, so while I’m typing away over here, in my ear all I can hear is the shake shake shake of the maraca’s and her yelling at the top of her lungs “SWIPER NO SWIPING!!!”. I’ll try to keep it together though. I do have a lot to say so go get some coffee and sit back and relax. You might be here a while.
I have had an epiphany since the last time we met. It’s something I knew all along because it is clearly stated in my business plan from way back when; I just didn’t know how right I was until now. Are you ready for it???? Okay, here is my earth shattering news… RETAIL IS HARD!!!! I’ve always known that my bread and butter and the way out of my $50,000.00 start up deficit and my path to millions would be the wholesale market, but it was never as crystal clear as it is today. Hat’s off to all you retailers both brick and mortar and online. I am now in my 4th local store, I am about a day away from being in a store in
Denver and I am now in 2 online stores. John Q Public however… he is a tough nut to crack! In my head, I thought as soon as I sent out my email updates and emailed every friend I have ever had in my whole life and notified the people on my waiting list that the online orders would FLOOD in! Not so. Online sales have been soooooo slow. Then last night I was a vendor at the girl’s church preschool craft fair and again, my expectations were crushed (and not in a good way). I sold 10 all day. Yep… 10. I had brought 50! As the inventor and manufacturer of the product, it’s hard not to get your feelings hurt when people don’t like your “baby”.
As I said, I always new direct to consumer sales was better left up to the professionals (the REAL retailers) but I am now more sure then ever that my business plan was right on track. Obviously my profit margin is highest retail/ but I just don’t have what it takes to be a successful retailer (nor do I want to be). So far, I have not been turned down once by a retailer customer/ store. Every single buyer or owner I have met with has bought AT LEAST a case right on the spot. With the stores I am hot hot hot. With the public directly…I am not not not. Here’s my take on why. With buyers, their job is to spend money. It’s a relatively easier sell, because they must spend the store’s money on new products. As buyers, that’s one of their primary focuses; therefore, you are simply competing against other products. The buyer is going to buy, period. It’s just a matter of convincing them that your product is better, more worthy, a more perfect match, etc… then the next product that walks in the door. With John Q Public, your 1st objection you have to overcome is just getting him to come off his money AT ALL. (I’m the worst consumer… I am Mrs. Frugal McDugal, so I know how hard it is to convince him to even spend money in the first place!) THEN if you can get him to agree to spend money at all, you have to deal with how much he wants to spend, THEN you are in competition with every other product in the store. There are so many more layers of objections with retail that you have to overcome. HATS OFF TO YOU RETAILERS!!! The public is a tough tough sell and I now know why I don’t want to rely on it to make my millions. It is an art better left to the professionals. I get such a thrill when my online orders trickle in, but being a manufacturer, I don’t have the time it would take to have a truly successful online retail store. (Again, I KNEW this, planned for it, and want this to be the way it is, I just could not have predicted how right I was) It really takes a TON of time and effort.
Okay, now, to put my “manufacturing hat” back on. I got samples for the next 2 collections and they are sooo cool!!! The Spicy Collection is coming and the charms are awesome! I am now also working on finalizing the 6th design of the Charmed Life Collection. I’m thinking the Spicy collection will be ready to launch in time for Valentines Day (what a great guy gift for Valentines Day!) and the Charmed Life Collection will be here way before Father’s Day, which will be one of my biggest PR pushes of the year. So… there you have it. If you are an inventor, pick your distribution channel and stick to it. You can’t be all things to all people. Know where your bread is buttered. It absolutely can be direct to consumer sales; you just have to have a completely different approach and game plan then if you’re going to focus on wholesale. I now have a new heighten appreciation for our friends in the retail industry. You guys rock! Keep those Grill Charms flying off YOUR shelves and I’ll keep you supplied, one case (or pallet… or container) at a time. And to my loyal friends out there, I don’t care where you get your Grill Charms… as long as you get them!
Leslie Haywood, Founder and President of Charmed Life Products, Inventor of Grill Charms™ www.grillcharms.com
